Is GE The Answer?

Airbus vice-president for marketing, Colin Stuart, confirmed last week the planemaker was in talks with other engine manufacturers for its new A350 XWB mid-sized jet, reported The Times of London.

British aero-engine maker Rolls-Royce is currently the only company making engines for the aircraft. Stuart would not specify with which companies he was speaking, but industry analysts say it is almost certain to be General Electric.

Rolls-Royce and GE have both developed a new generation of engines for the Boeing 787, and Airbus is eager to land a second engine supplier that will make its plane attractive to airlines that do not have Rolls-Royce engines in their fleet.

That may be a big factor... especially as Airbus is also reportedly hopeful of winning a big order for the A350 from a Middle East airline this week.

ANN reported last October that Airbus was courting three Israeli Airlines with offers of a fuel price guarantee. Additionally, Airbus is also prepared to buy back its planes after a specific period of time, if Israel doesn't want them anymore. And the manufacturer has also offered to train the pilots and maintenance crew at a reduced rate. There is no confirmation that the A350 order would be coming from one of the Israeli airlines, however.

Boeing's 787 will make its first flight later this year and enter service with All Nippon Airlines in May next year. The A350 will not enter service until 2013.
 
The rival manufacturers are fighting to win a $15 billion contract from British Airways, which plans to replace its long-haul fleet over the next decade.

Analysts see Boeing as the favorite on that deal; it is offering the 787 in a package with the larger 777 and 747-8. However, BA insiders say the greater size of the A350 XWB tilts the scale towards Airbus' favor, making the decision too close to call.
 
Airbus's BA proposal includes its A350 and the A380 super jumbo.

FMI: www.airbus.com, www.rolls-royce.com, www.geae.com